Section 238 | Requirement for tax adviser to notify clients of suspension or ineligibility orders

(1)Where a registered tax adviser’s registration has been suspended under section 232(1) (suspension of registration: registration conditions) for a period of more than 30 days, the adviser must take reasonable steps to notify each of their clients about the suspension within the period of 30 days beginning with the 31st day of the suspension.

(2)Where a registered tax adviser’s registration has been suspended under section 232(2) (suspension of registration: behaviour of adviser), the adviser must take reasonable steps to notify each of their clients about the suspension within the period of 30 days beginning with the day on which the suspension first has effect.

(3)Where a registered tax adviser is issued with a temporary or permanent ineligibility order under this Chapter, the adviser must take reasonable steps to notify each of their clients about the issuing of the order within the period of 30 days beginning with the day on which the order first has effect.

(4)A notification to a client under subsection (1), (2) or (3) must be in the form and manner set out in a notice published by HMRC.

(5)If a tax adviser contravenes subsection (1), (2) or (3) the adviser is liable to a penalty of £5,000.

(6)Where the contravention relates to more than one client, the tax adviser is liable to a penalty under this section in respect of each client.